Increase of €158M in Budget 2025 will significantly support farmers – McConalogue

Donegal minister, Charlie McConalogue, says he has secured an additional €158 million in Budget 2025 for the Department of Agriculture, Food and the Marine which represents an increase of 8% on Budget 2024 with €85 million to be spent in new measures for farmers .

The Minister for Agriculture, Food and the Marine said the funding will provide significant support to farming and coastal communities, as well as those working in these sectors in 2025.

The 2025 Estimates provide a gross vote of €2.112 billion for the Department of Agriculture, Food and the Marine. This includes a Capital Program of €320 million, and Current Expenditure of €1.792 billion.

Referring to today’s Budget, Minister McConalogue said: ”I wanted in particular to build on the significant sectoral supports I have put in place since my appointment as Minister. With that in mind, I am delivering substantially increased supports for the dairy beef, suckler, sheep and tillage sectors.”

Dairy Beef

“Earlier this year, I published a 10-point plan to develop and support our growing Dairy Beef sector. To further encourage this development, I am doubling the current payment per eligible calf from €20 to €40. As our aim is to encourage greater integration of the dairy and beef sectors, the allocation of this funding will be agreed in consultation with the farm organizations in due course.

Beef

“I have increased targeted supports to the beef sector in successive years through the Suckler Carbon Efficiency Program and the National Beef Welfare Program. Today I am increasing the payment per cow and calf from €200 this year to €225 in 2025. I will also continue to fund the National Genotyping Program which will make a significant contribution to the development of more sustainable beef and dairy sectors.

Sheep

“I am also increasing the current rate of €8 per ewe under the National Sheep Welfare Scheme by €5 to €13 per ewe. When combined with the €12 per ewe available under the CSP Sheep Improvement Scheme (SIS), sheep farmers will receive €25 per ewe in 2025. This is a 150% increase in funding from €10 to €25 since I became Minister and is by far the largest payment ever made to sheep farmers.

Tillage

“This Government has provided more support to tillage farmers than any previous Government. Today I am fully delivering on my commitment of a €100 per hectare payment for farmers that planted tillage and field grown food crops for harvest 2024 as declared on farmers 2024 Basic Income Support for Sustainability (BISS). This is in addition to the Straw Incorporation Measure which will operate as normal next year.”

Organics

Commenting on the funding being made available for organic farming, Minister McConalogue said: “An allocation of €256 million was made for organic farming in the 2023-2027 CAP Strategic Plan. This has been extraordinarily popular with farmers, with for example, market demand for organics in the tillage sector currently outstripping supply. To match this demand a further €10 million in funding is being provided to the sector.”

Referring to the recent veterinary schools’ announcement said: “Just two weeks ago, I was delighted to announce that I was taking the unprecedented step of providing funding for two new vet schools. Of the €50 million to be provided for this, my department will be providing €25m; €5m of which is included in its estimate for 2025.”

Forgotten Farmers

Minister McConalogue also referred to the farmer group known as the ‘Forgotten Farmers’: “I have always affirmed my commitment to resolving this issue. I am pleased that I can announce that in 2025, I will open a scheme for this group with initial funding of €5 million provided. This is a commitment under the Program for Government, and I am delighted that I am in a position to now progress a scheme that has long been talked about with additional budgetary provision to be made in 2026.”

Water Quality and the Environment

“For farmers participating in agri-environmental actions, including through the Agri-Climate Rural Environment Scheme (ACRES), Areas of Natural Constraint scheme (ANC), Forestry and Organic Farming Schemes, €716 million is being provided in 2025. In addition to the 2025 budget allocation, the Department of Agriculture, Food and the Marine will be administering over €1.2 billion of EU funding, including for ECO schemes and the BISS payments to farmers.”

ACRES

Minister McConalogue has provided an increased provision of €60 million for ACRES bringing funding for the scheme in 2025 to €260 million. The follows his decision to accept all 55,000 participants into the scheme.

“I secured €1.5 billion for ACRES over the duration of the Scheme, making it the best-ever funded Agri-environment scheme. A total of €245 million has been paid to date, and advance payments in respect of scheme year 2024 will commence next month.”

“I have committed €40 million in capital funding for the development of a biomethane industry. “The commitment for early delivery in 2025 is €5m with the remainder to be paid in 2026,” he said.

Water quality measures

Minister McConalogue has also provided for measures to improve water quality and to support the Government’s aim of securing a renewal of Irelands Nitrates Derogation.

The Minister said: “My recently published plan to secure the Nitrates Derogation is fully funded under this budget. Farmers have made significant commitments to improving water quality, as shown during the recent visit by the European Commission’s Nitrates Team to Ireland. I am supporting these efforts through capital and program funding, with at least €61 million being provided for TAMs in 2025.

“In this context, further to my introduction of a dedicated 70% Nutrient Importation Storage Scheme (NISS), subject to European Commission approval, I will open a 60% grant-aided Nutrient Storage Scheme, with a separate investment ceiling of €90,000. This will allow farmers to invest in nutrient storage, under a dedicated investment ceiling, while also allowing them to invest in other measures on their holdings, up to an additional €90,000 investment ceiling.”

EIPs

“In addition, this budget continues the funding committed under the €60m water EIP “Farming for Water” that I launched in March with my colleagues, Minister Hackett and Minister Noonan.

Minister Hackett and I have allocated a budget of €36 million for EIPs under the new CSP Programme. A new round of calls, to address a broad range of topics, ranging from sustainability to the use of technology in farming, will be announced in the coming weeks.”

Other Sustainability measures

“The Department has made a significant investment in the Soil Sampling and Analysis Program over the last number of years, and this funding will be made available for a third phase of the program to be launched later this year.

The Soil Sampling and Analysis Program provides valuable information to farmers to inform decisions that promote the health of their soils. Nutrient management and soil health are central to achieving economic and environmental sustainability on farms. To encourage farmers to continue to improve the environmental sustainability of their holdings, a fourth program of supports, of €1.5 million for Clover and €1.25 for Multi-Species measures were secured for Budget 2025.

Knowledge Transfer

“The Knowledge Transfer Scheme program which commenced this year will continue into 2025 and 2026 with the first rounds of payment issuing in March and May 2025 to farmer and advisor participants.”

Forestries

Noting that the 2025 allocation for Forestry is €91 million, Minister McConalogue continued: “This funding will support the forestry program, and also provides for the Ash Dieback Reconstitution Scheme and the Ash Dieback Climate Action Performance Payment, which was approved by Cabinet on 30 April this year. This includes an additional payment of €5,000 per hectare for ash forest owners who have engaged with an ash dieback reconstitution scheme.”

Fishing and Seafood

“The fisheries and seafood sector will be supported by an increase of €7 million bringing the total budget allocation for the sector to €177 million for 2025.

“This will support continued investment in our piers and harbors as well as provide investment for the seafood sector under a range of schemes including:

The Inshore Fleet Economic Assessment Scheme with payments of between €3,500 and €5,000 to inshore fishing vessels.
The Inshore Fisheries Scheme for small-scale coastal fishing vessels with enhanced grant intensity rates of between 80% and 100% to support both on-board and on-shore investment.
Lobster V-notching Scheme to support fishing incomes and improve the sustainability of this fishery.
Sustainable Fisheries Scheme providing support for on-board investment in sustainable fishing gear.
Seafood Processing Capital Investment Scheme providing important support for capital investment in the seafood processing sector.
Aquaculture Capital Investment Scheme providing support to aquaculture operators for capital investment.
The Seafood Training Scheme supporting the development of skills and knowledge across the Fisheries, Aquaculture and Seafood Processing sectors.
The Young Fishers Scheme which provides support to persons under 40 in purchasing their first vessel with grant aid of up to 40% of the cost of the vessel up to a maximum grant payment of €250,000.”

“Additional schemes in 2025 to support Producer Organizations, and to support community-led local development within 10km of the coast via the Fisheries Local Action Groups (FLAGs) as well as a seafood innovation scheme,” the Donegal minister added.

Agri taxation measures

Minister McConalogue also welcomed that the Government committed to retain key taxation measures to support the development in the sector in 2025.

These include:

An extension of the stock reliefs for a further three years to 21 December 2027, which is so important for young farmers and those entering farm partnership arrangements, including for succession purposes;
the capital acquisition tax agricultural relief, which is worth approximately €250 million per annum to farmers;
accelerated capital allowances for the purchase of farm safety equipment, with an extended list of eligible investments
Based on macro-economic data from the CSO and Revenue Commissioners, the farmers Flat Rate Compensation will increase from the current 4.8% to 5.1% from 1 January 2025.

Following consultation with stakeholders, and to ensure that relief benefits real farmers rather than speculators, a new provision requiring the disponer to retain land for at least six years before benefiting from the CAT relief, is being introduced. The Minister welcomed this measure and said that it was entirely consistent with the intention behind the relief.

The Minister also welcomed that an opportunity to avail of an exemption from the Residential Zoned land Tax (RZLT) in 2025 is being provided for landowners and farmers who carry out genuine economic activity on their land if they seek to have their land zoned.

Referring to this exemption, Minister McConalogue said: “It is critically important that we take measures to progress our housing policies, but this new provision addresses the legitimate concerns of genuine farmers.”

In relation to the Government’s acknowledgment of income instability in the farming sector, the Minister said: “Considerable work has already been undertaken in relation to the introduction of an income volatility measure and I look forward to working with the Department of Finance to build on this with a view to having the necessary legislative parameters addressed in advance of Budget 2026.”

“Stripping out the exceptional Brexit Adjustment Reserve (BAR) and COVID funding, this is the biggest funding package ever delivered for the agriculture and food. I am satisfied that following intensive engagement, we have succeeded in obtaining a balanced package that will support the sustainable development of our agriculture forestry and fisheries sectors in 2026 and beyond. This is a strong message to our farmers that this Government values ​​them and will continue to support them,” the Minister for Agriculture, Food and the Marine added.

Increase of €158M in Budget 2025 will significantly support farmers – McConalogue was last modified: October 1st, 2024 by Staff Writer